This article discusses the alleged
gift tax deficiency case
against media mogul Sumner
Redstone. The IRS argues that
Redstone made a taxable gift in
1972 when, in connection with
the settlement of an intrafamily
dispute, he transferred shares
of a family-owned business to
trusts for his children. The authors
suggest that the integrity
of a self-reporting gift tax system
depends in part on the
IRS’s ability to impose tax on
non-disclosed transfers, however old they may be.
Redstone likely will face a tax bill far exceeding $1
million.

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